Oxford Township Committee seeks long-term solution to debt

The Oxford Township Committee tonight saved residents a major increase in their taxes in the short-term, but taxpayers are still on the hook in the future.

The township failed to properly pay off its debt the past few years, township auditor Anthony Ardito said during a budget meeting tonight, meaning Oxford faced a large bill due soon.

Oxford could have raised taxes significantly because debt payments are excluded under the state's 2 percent cap on property tax revenue increases.

Only half of a 2003 bond for $925,000 due in 2013 has been paid, Ardito said.

He said to pay off the bond, which was used for a land purchase, the township would need to increase its $61,000 payment from last year to $397,000 in 2012.

"It's kind of big bite to put on taxpayers in one or two years," Mayor Donald Niece said.

Instead, the committee elected to refinance the bond to extend the time it would take to repay. The move increases how much Oxford would owe in the long run because of interest.

Committee members said they did not want to increase taxes on residents in a sluggish economy.

"It's unfortunate we are in this position, but I can understand why some of this was done," Niece said, referring to delays in paying down the debt. He said previous committee members likely wanted to keep taxes low, too.

The township's bond attorney must still review the committee's plan to refinance the debt.

Township officials say they cannot propose a 2012 tax rate until the bond-repayment plan is finalized. Annual payments could range from $50,000 to $100,000.

The committee held off on decisions to increase funding to the Oxford Volunteer Fire Department by roughly $15,000, a 1 or 2 percent raise for some employees and returning some of the $8,000 cut last year from the Oxford Public Library.

Committeeman John "Doug" Ort said he would rather the township move out of the county library system and just fund the public library, similar to Belvidere's arrangement.

"Basically, we are asking taxpayers to pay twice," Ort said.

The township did have some good news going into the budget process.

Oxford will save $12,000 out of $143,000 in employee health insurance costs because former Committeewoman Bonnie Riley, who lost re-election last year, will no longer receive insurance from the township.